Economy

Justice Seeks Records on Kobe Case
Written by Tim Triplett
October 26, 2017
The U.S. Justice Department wants to know if Americans are at risk as a result of the Kobe Steel quality scandal. The Japanese metal producer’s subsidiary, Kobe Steel USA, Inc., received a request from the Justice Department on Oct. 16 seeking related documents. Kobe officials said they plan to cooperate with the Justice investigation.
Kobe Steel’s stock price has plummeted by more than 40 percent following its admission Oct. 8 that it had falsified quality data and sold potentially substandard aluminum, copper and steel products to customers around the world, including American companies Boeing, Ford and General Motors. Some 500 companies may have received metal products with falsified test records dating back to 2007.
Kobe and its customers are scrambling to determine if metals that may not have been produced to the proper specifications were used in applications that pose a potential danger to the public, such as critical parts in automobiles or aircraft. So far, no specific safety issues or recalls have been announced.
The Justice Department scrutiny raises the specter of legal action against Kobe Steel, whose wrongdoings have shaken the confidence in Japan’s manufacturing industry.

Tim Triplett
Read more from Tim TriplettLatest in Economy

Architecture firms struggle through April
For the third month in a row, architecture firms reported a reduction in billings through April, according to the latest Architecture Billings Index release.

House committee blocks GOP budget proposal
The budget proposal has big implications for steel and manufacturing.

Manufacturing in New York state contracts again in May
Manufacturing activity in New York state declined for the third consecutive month, according to the May Empire State Manufacturing Survey from the Federal Reserve Bank of New York. Responding firms continue to forecast weaker business conditions in the coming months.

Chicago Business Barometer falls back in April, remains in contraction
The Chicago Business Barometer declined in April, reversing March’s gains, according to Market News International (MNI) and the Institute for Supply Management (ISM).

Fewer manufacturers optimistic about the economy
PMA’s April report shows that only 16% of surveyed manufacturers anticipate an increase in economic activity in the next three months (down from 23% in March)